Barrick Company has established a flexible budget for manufacturing overhead based on direct labour-hours. Total budgeted costs at 200,000 direct labour-hours are as follows:

Variable costs (total):

Packing supplies

$120,000

Indirect labour

$180,000

Fixed costs (total):

Utilities

$100,000

Rent

$ 40,000

Insurance

$ 20,000

If Barrick Company plans to operate at 190,000 direct labour-hours during the next period, the flexible budget would show indirect labour costs of:

A.

$270,000

B.

$180,000

C.

$114,000

D.

$171,000